Panera will likely prevail in its case against Papa John’s in its claim the pizza giant stole a high ranking executive and architect of the digital technology that speeds delivery to consumers, according to a federal judge.

In an Aug. 3 court order, Judge John Ross barred former Panera executive Michael Nettles, at least for now, from working for Louisville-based Papa John’s Pizza.

The lawsuit asserts Papa John's hiring of Nettles violated an industry noncompete agreement. The judge said both companies "target a so-called 'clean ingredient consumer,'" and therefore "are direct competitors in the realm of carryout options for such a consumer base."

“The court is satisfied that Panera is likely to succeed on the merits of several of its claims, including its request for enforcement of the confidentiality and non-competition agreement,” Ross said in the order.

Panera filed the high-stakes case filed last month in U.S. Eastern District Court in Missouri.

The fight stems from an alleged theft of secrets by Nettles, who left Panera July 1 upon “the untimely death of his wife,” court records state. He asked to be released from a noncompete agreement that barred him from working for direct competitors. Panera denied that request and Nettles began work July 19 at Papa John’s, where most pizza orders come in via smartphones or computer.

Many documents filed in the case remain under temporary seal from public view, an acknowledgement by the court that computer trade secrets possessed by both parties are at stake. In court motions to battle the temporary injunction, Papa John's legal team continued to assert its business does not directly compete with Panera and no theft of secrets has taken place.

"Nothing from Panera has been misappropriated," Papa John's said in a failed motion to block the restraining order. "After carefully reviewing the (noncompete) agreement, Papa John’s concluded it could not legally prohibit Nettles from working for Papa John’s for several reasons, the clearest of which was the two companies were not competitors."

Panera's lawsuit reflects fierce industry competition as restaurant companies seek an edge in the design of smartphone apps and ordering technology as more and more consumers customize orders via smartphones for pickup or delivery. Mastering databases full of ordering history from customer reward programs allows restaurant companies to target consumers and hone marketing strategy.

Panera's lawsuit asserts that Nettles wiped computer devices clean of his work upon his resignation from Panera headquarters in St. Louis, a statement Ross said justified the temporary restraining order barring his employment at Papa John's for now.

"Based upon the record, the court finds that during his employment with Panera, Nettles was privy to and worked extensively with Panera’s trade secrets regarding such matters as innovations in ordering and delivery technologies," Ross' order said. "Nettles’ deletion of the documents in his possession, and return of his computer to “factory state,” gives rise to a strong inference of irreparable harm and suggests that Nettles may have violated his undisputed duty to maintain or limit the use of the information he possessed."

In the event that Panera does not prevail in the case, Ross’ order requires the bakery chain to post a $200,000 bond to compensate Nettles for lost revenue and expenses, a figure calculated based on his new compensation package at Papa John's.

Since the Aug. 3 order, Papa John’s and Nettles have jointly filed motions to remove the dispute out of federal court into arbitration proceedings. A hearing on Panera’s request for a permanent injunction is scheduled Aug. 16, in federal court in St. Louis.